This notice provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the
24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. In addition, this notice provides guidance
as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning
before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment
rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007. These rates reflect certain changes implemented
by the Moving Ahead for Progress in the 21st Century Act, Public Law 112–141 (MAP–21). MAP–21 provides that for purposes of
§ 430(h)(2), the segment rates are limited by the applicable maximum percentage or the applicable minimum percentage based
on the average of segment rates over a 25-year period.

YIELD CURVE AND SEGMENT RATES

Generally, except for certain plans under sections 104 and 105 of the Pension Protection Act of 2006, § 430 of the Code specifies
the minimum funding requirements that apply to single employer plans pursuant to § 412. Section 430(h)(2) specifies the interest
rates that must be used to determine a plan’s target normal cost and funding target. Under this provision, present value is
generally determined using three 24-month average interest rates (“segment rates”), each of which applies to cash flows during
specified periods. To the extent provided under § 430(h)(2)(C)(iv), these segment rates are adjusted by the applicable percentage
of the 25-year average segment rates for the period ending September 30 of the year preceding the calendar year in which the
plan year begins. However, an election may be made under § 430(h)(2)(D)(ii) to use the monthly yield curve in place of the
segment rates.

Notice 2007–81, 2007–44 I.R.B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month
average corporate bond segment rates used to compute the target normal cost and the funding target. Pursuant to Notice 2007–81,
the monthly corporate bond yield curve derived from November 2013 data is in Table I at the end of this notice. The spot first,
second, and third segment rates for the month of November 2013 are, respectively, 1.19, 4.53, and 5.66. For plan years beginning
on or after January 1, 2012, the 24-month average segment rates determined under § 430(h)(2)(C)(iv) must be adjusted by the
applicable percentage of the corresponding 25-year average segment rates. The 25-year average segment rates for plan years
beginning in 2012, 2013, and 2014 were published in Notice 2012–55, 2012–36 I.R.B. 332, Notice 2013–11, 2013–11 I.R.B. 610,
and Notice 2013–58, 2013–40 I.R.B. 294, respectively. The three 24-month average corporate bond segment rates applicable for
December 2013 without adjustment, and the adjusted 24-month average segment rates taking into account the applicable percentages
of the corresponding 25-year average segment rates, are as follows:

For Plan Years Beginning In

24-Month Average Segment Rates Not Adjusted

Adjusted 24-Month Average Segment Rates, Based on Applicable Percentage of 25-Year Average Rates

Applicable Month

First Segment

Second Segment

Third Segment

First Segment

Second Segment

Third Segment

2012

December

2013

1.28

4.05

5.07

5.54

6.85

7.52

2013

December

2013

1.28

4.05

5.07

4.94

6.15

6.76

2014

December

2013

1.28

4.05

5.07

4.43

5.62

6.22

30-YEAR TREASURY SECURITIES INTEREST RATES

Generally for plan years beginning after 2007, § 431 specifies the minimum funding requirements that apply to multiemployer
plans pursuant to § 412. Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in section
431(c)(6)(A), based on the plan’s current liability. Section 431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate
current liability for this purpose must be no more than 5 percent above and no more than 10 percent below the weighted average
of the rates of interest on 30-year Treasury securities during the four-year period ending on the last day before the beginning
of the plan year. Notice 88–73, 1988–2 C.B. 383, provides guidelines for determining the weighted average interest rate. The
rate of interest on 30-year Treasury securities for November 2013 is 3.80 percent. The Service has determined this rate as
the average of the daily determinations of yield on the 30-year Treasury bond maturing in August 2043 determined each day
through November 13, 2013, and the yield on the 30-year Treasury bond maturing in November 2043 determined each day for the
balance of the month. The following rates were determined for plan years beginning in the month shown below.

For Plan Years Beginning in

30-Year Treasury Weighted Average

Permissible Range

Month

Year

90%

to

105%

December

2013

3.46

3.11

3.63

MINIMUM PRESENT VALUE SEGMENT RATES

In general, the applicable interest rates under § 417(e)(3)(D) are segment rates computed without regard to a 24-month average.
Notice 2007–81 provides guidelines for determining the minimum present value segment rates. Pursuant to that notice, the minimum
present value segment rates determined for November 2013 are as follows:

First Segment

Second Segment

Third Segment

1.19

4.53

5.66

DRAFTING INFORMATION

The principal author of this notice is Tony Montanaro of the Employee Plans, Tax Exempt and Government Entities Division.
Mr. Montanaro may be e-mailed at RetirementPlanQuestions@irs.gov.